Peru

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Peru - In Short.

Overview of Peru

Ancient Peru was the seat of several prominent Andean civilizations, most notably that of the Incas whose empire was captured by Spanish conquistadors in 1533. Peru declared its independence in 1821, and remaining Spanish forces were defeated in 1824. After a dozen years of military rule, Peru returned to democratic leadership in 1980, but experienced economic problems and the growth of a violent insurgency. President Alberto FUJIMORI’s election in 1990 ushered in a decade that saw a dramatic turnaround in the economy and significant progress in curtailing guerrilla activity. Nevertheless, the president’s increasing reliance on authoritarian measures and an economic slump in the late 1990s generated mounting dissatisfaction with his regime, which led to his resignation in 2000. A caretaker government oversaw a new election in the spring of 2001, which installed Alejandro TOLEDO Manrique as the new head of government – Peru’s first democratically elected president of indigenous ethnicity. The presidential election of 2006 saw the return of Alan GARCIA Perez who, after a disappointing presidential term from 1985 to 1990, oversaw a robust economic rebound. Former army officer Ollanta HUMALA Tasso was elected president in June 2011, and carried on the sound, market-oriented economic policies of the three preceding administrations. Poverty and unemployment levels have fallen dramatically in the last decade, and today Peru boasts one of the best performing economies in Latin America. Pedro Pablo KUCZYNSKI Godard won a very narrow presidential runoff election in June 2016. Facing impeachment after evidence surfaced of his involvement in a vote-buying scandal, President KUCZYNSKI offered his resignation on 21 March 2018. Two days later, First Vice President Martin Alberto VIZCARRA Cornejo was sworn in as president. On 30 September 2019, President VIZCARRA invoked his constitutional authority to dissolve Peru’s Congress after months of battling with the body over anticorruption reforms. New congressional elections took place on 26 January 2020 resulting in the return of an opposition-led legislature. President VIZCARRA was impeached by Congress on 9 November 2020 for a second time and removed from office after being accused of corruption and mishandling of the COVID-19 pandemic. Because of vacancies in the vice-presidential positions, constitutional succession led to the President of the Peruvian Congress, Manuel MERINO, becoming the next president of Peru. His ascension to office was not well received by the population, and large protests forced his resignation on 15 November 2020. On 17 November, Francisco SAGASTI assumed the position of President of Peru after being appointed President of the Congress the previous day.
Value
Country Full Name
Peru
Country Code
PER
Region
Latin America & Caribbean
Income Group
Upper middle income
Currency Unit
GDP
2.02E+11
Population
32971846
Land Area
1280000
Net National Income Per Capita
5232.968949
GDP per Capita (PPP)
11878.52154

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Peru - Economic

Economy of Peru

Peru’s economy reflects its varied topography – an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru’s coastal waters provide excellent fishing grounds. Peru is the world’s second largest producer of silver and copper.The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru’s metals and minerals exports, which account for 55% of the country’s total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru’s strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.Peru’s rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru’s non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.Peru’s free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

Unemployment Rate

Inflation Rate

Peru - GDP Composition

GDP Composiiton & Value Added of Peru

Last Updated: Jan, 2021, Updated For 2020.

Peru - GDP, Value Added

Demographics of Peru

approximately one-third of the population resides along the desert coastal belt in the west, with a strong focus on the capital city of Lima; the Andean highlands, or sierra, which is strongly identified with the country’s Amerindian population, contains roughly half of the overall population; the eastern slopes of the Andes, and adjoining rainforest, are sparsely populated
Geographic Location

Western South America, bordering the South Pacific Ocean, between Chile and Ecuador

Races

Mestizo (mixed Amerindian and White) 60.2%, Amerindian 25.8%, White 5.9%, African descent 3.6%, other (includes Chinese and Japanese descent) 1.2%, unspecified 3.3% (2017 est.)

Languages

Spanish (official) 82.9%, Quechua (official) 13.6%, Aymara (official) 1.6%, Ashaninka 0.3%, other native languages (includes a large number of minor Amazonian languages) 0.8%, other (includes foreign languages and sign language) 0.2%, none 0.1%, unspecified 0.7% (2017 est.)major-language

Religion

Roman Catholic 60%, Christian 14.6% (includes Evangelical 11.1%, other 3.5%), other 0.3%, none 4%, unspecified 21.1% (2017 est.)

Dependency & Expectancy of Peru

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Peru - Social Media Briefing

Peru - Social Media & Social Commerce

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Politics & Policies of Peru

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

APEC, BIS, CAN, CD, CELAC, EITI (compliant country), FAO, G-24, G-77, IADB, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), LAES, LAIA, Mercosur (associate), MIGA, MINUSTAH, MONUSCO, NAM, OAS, OPANAL, OPCW, Pacific Alliance, PCA, SICA (observer), UN, UNAMID, UNASUR, UNCTAD, UNESCO, UNHCR, UNIDO, Union Latina, UNISFA, UNMISS, UNOCI, UN Security Council (temporary), UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Peru

Export of Peru

Import Destination

Export Destination